Thinking about passive income? You may need to think again.
Most people love the idea of adding ‘passive’ income to their portfolio of money making ideas but are unsure about how realistic it is.
Is it too good to be true?
Have all the passive income opportunities been taken?
The prospect of money trickling into your bank account while you sleep is up there with winning the lottery. Difference is, to win the lottery you can only do two things- 1) buy a ticket 2) hope! With passive income, the power is in your hands and the options are infinite.
So why is it so hard to get off the ground? Why isn’t everybody sipping pina coladas on the beach as their smart phone sings out every time a deposit is made?
Top reasons why your passive income isn’t getting off the ground- and what to do about it
Mistake #1 Focusing on what you want to create not what others want to buy
Coming up with ideas for a product often isn’t the problem- it’s coming up with an idea that someone else will want. It’s a huge misconception that just because you want to do it, others will want to buy it. Generally, they don’t.
Do your market research. Your idea may be appealing to you, but that isn’t really the point. It needs to appeal to the people holding the credit cards. Find ONE problem that you can solve for ONE group of people. You need to solve that problem so well that customers will be willing to part with cash to access what you have to offer.
Mistake #2 Creating an all singing all dancing product
The more excited we get about our idea the more carried away we can get. We start to plan out time consuming and labour intensive schemes which involve forums and widgets, interactive screens and complex payment gateways.
Keep things simple. You need to put in the least amount of time in as possible on actual product design until you know there are people interested in buying what you have to offer. Focus on how you will market the thing before you create it.
Mistake #3 Building it with the expectation that they will come
When it comes to your offering it is worth considering ways you can avoid putting too much effort or money into design or production until you have orders.
Either do a pre-order or let people know that there will be a time delay until it gets delivered. Don’t wait to make it perfect before you release it, start marketing it early.
Mistake #4 Thinking this is a quick way to make lots of money
If you are poised to jack in your job because you have a great passive income idea think again. Passive income is often a very slow burner. The great news is that if you can sell a handful of whatever it is you are offering, you can sell more. But actually pulling this off is a time consuming process. The upside of passive income is that the work you do today will pay you again and again and again.
Aim for smaller markets; they might not make you a fortune but a few of these sites can add a decent amount of cash to your bottom line. Passive income streams work best when you are playing a long game. For now, just make sure it’s not the only game you are playing.
If you are interested in this topic and want to know more you might be interested in our 180 days to your office in the beach program. The resource ‘Opening the door to passive income- smart strategies for creating online products’ covers:
- What exactly can I offer?
- How do I sell my product?
- How can I get organic traffic to my site?
- How can I get other traffic to my site?
Plus we explain some behind the scenes details on how we have successfully built up our own passive income business!
What is your passive income dream?
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